Your employer wants to keep you on, and you need a new work permit. The immigration consultant says the LMIA was “refused” without anyone looking at it. That is not a refusal on the merits. It is a refusal to process, and in Toronto it has applied to most low-wage jobs for two years.
The rule
Since September 2024, Service Canada has refused to process Labour Market Impact Assessment applications for low-wage positions in any census metropolitan area where the unemployment rate is 6% or higher. The rates are updated every three months.
Toronto has been above the line in every quarterly update since the rule began. For applications submitted between October 9, 2026 and January 7, 2027, the Toronto rate is 7.5%. Before applying, check the current rate on the ESDC refusal-to-process page, which is the only reliable source.
A refusal to process means the file is returned without assessment. The fee is not refunded.
What counts as low-wage
A position is low-wage if the offered wage is below the provincial or territorial median hourly wage. The thresholds are published by ESDC and change periodically. A job offered a dollar above the threshold is a high-wage position and is not affected by this rule, though it is subject to the other high-wage requirements.
The rule applies to the work location, not the employer’s head office. An employer in Toronto hiring for a position in a community outside any census metropolitan area is not caught by it.
The exceptions
Even in a restricted area, low-wage LMIAs can still be processed for some sectors, including primary agriculture, food and fish processing, construction, and health care. The exact list is set by ministerial instructions, so check the current version before applying.
The other low-wage limits
The 6% rule sits on top of several others:
- Most employers are capped at 10% of their workforce in low-wage temporary foreign workers.
- Low-wage work permits are now generally issued for one year, not two.
- Employers must meet recruitment, advertising and wage requirements that have tightened over the past two years.
- ESDC has also made clear that it looks at who actually directs and supervises the worker when deciding who the employer is, which restricts staffing agencies and employer-of-record arrangements. Our post on LMIA-based and LMIA-exempt work permits explains the LMIA process.
What this means for workers
If your current work permit is tied to a low-wage job in Toronto, your employer cannot get a new LMIA for that job while Toronto stays above 6%. That affects renewals as much as new hires.
The options depend on your situation:
- A higher-wage offer. If the employer can offer the median wage or more, the position becomes high-wage and the rule no longer applies.
- An exempt sector or an open area. A job in an exempt sector, or a work location outside a restricted area, can still be processed.
- An LMIA-exempt permit. Some permits do not need an LMIA at all, including those under international agreements and certain spousal and provincial categories.
- Permanent residence. A provincial nomination or Express Entry invitation can support a bridging open work permit while the application is processed.
Do not let a permit expire while you wait for a solution. Our post on restoration of status explains the 90-day window, and our post on changing employers on a closed permit covers moving to a new job.
If an employer is using the situation to withhold pay or threaten your status, the open work permit for vulnerable workers exists for that.
What this means for employers
Check the current rate for your work location before advertising. A refusal to process after weeks of recruitment is wasted time and money. If the position is close to the median wage, the business case for raising it is often stronger than the cost of losing the worker.
How we can help
At Kabir & Alam, we advise workers and employers on whether a position can be processed, which permit category fits, and how to keep status while a longer-term route is pursued. Read more about our work permits practice or book a consultation with us.
This post is general information about Canadian immigration law and is not legal advice. Every case turns on its own facts. Speak with a lawyer about your situation before making decisions.